As on March 15, the total number of registered enterprises on Udyam and UAP crossed four crore, which is a major milestone for the formalization initiative undertaken by the Ministry of Micro, Small and Medium Enterprises (MSMEs).
The MSME ministry is committed to facilitate the promotion and development of micro, small and medium enterprises, according to an official press release on Friday.
The ministry through a notification dated June 26, 2020 adopted a composite definition of investment in plant and machinery and turnover, introduced for classification of micro, small and medium enterprises.
Vide a notification dated July 1, 2020, a simple, online and free Udyam Registration Portal — Udyam — was launched for formalization of enterprises having PAN. The Udyam registration takes into account the investment in plant and machinery and turnover. The details of investment in plant and machinery and turnover are captured from the database of CBDT and GSTN.
Subsequently, the ministry launched Udyam Assist Platform (UAP) on January 11, 2023 for enterprises not having GSTIN. The Government of India, vide Gazette Notification S.O. 1296(E) dated March 20, 2023, specified that the certificate issued on the UAP to informal micro enterprises (IMEs) shall be treated at par with Udyam Registration Certificate for the purpose of availing priority sector lending (PSL) benefits.
Accordingly, the Reserve Bank of India (RBI) vide its circular dated May 9, 2023 also categorised that the IMEs with an Udyam Assist Certificate shall be treated as micro enterprises under MSME for the purposes of PSL classification, the ministry added.
